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Between 1972 (when Bangladesh became independent) and 1994, the number of ministries almost doubled from 21 to 35. During the same period, public employment (in civilian government comprising state owned enterprises, ministries, departments, directorates, autonomous bodies and sub-national governments) grew at the annual compounded rate of 3.6% to almost 1 million in 1992, after which it has remained nearly steady. The nearly 1 million people employed by government amount to one-third of all formal sector employment.

As percentage of the country's total labor force, government employment in Bangladesh is lower than most other countries in South Asia - as shown in the table below.

Source:IMF (2000)

Comparing the size of government in Bangladesh with some of its neighbors
  Total Government employees
as % of labor force
Bangladesh 6.2
India 4.5
Pakistan 1.7
Nepal 12.6
Source: Human Development in South Asia 1999: The Crisis of Governance published byMahbub ul Haq
Human Development Center, Islamabad, Pakistan.

During the period 1992-93 to 1998-99, personnel expenditure (pay and allowances) in the public sector has declined, both as a proportion of current expenditure and the GDP.

Comparing the size of government in Bangladesh with some of its neighbors
1994-95 1995-96 1996-97 1997-1998
Personnel expenditure
as a % of GDP
2.6 2.6 2.5 2.4
Personnel expenditure
as a % of current expenditure
38.4 37.2 35.5 32.5
Source: Bangladesh: Recent Economic Developments, IMF Staff Country Report No. 0025.